BOG maintains Monetary Policy Rate at 26%

quist

January 25, 2016 12:02 PM

This was after the Bank of Ghana concluded their 68th regular Monetary Policy Meeting, and concluded that the rate is better of maintained.

The Bank of Ghana has maintained the country's Monetary Policy Rate at 26%.

The governor of the Bank of Ghana took into cognisance the latest inflation rate of 17.7% up marginally from 17.6% at November and 17.4 in October. The governor added that checks by the bank showed moderation in price movement, which is as a result of the tight monetary policy stance and ongoing fiscal consolidation.

In the monetary Policy press conference earlier Monday, the Dr. Henry Wampah further revealed that inflation projections also suggest moderate price increases. This slower increases to continue in the first quarter of 2016 with a target rate of 8 plus or minus 2%.

The Governor of the Central Bank however mentioned some external factors that could pose a threat to the slowing inflation rate.

" This includes uncertainties regarding the second round effect of unanticipated petroleum price adjustments, exchange rates movements as well as, worsening external financing conditions. This will however be moderated by lower crude oil prices at the import level and improvement in the energy situation."

On the Banks Composite index, the Monetary Policy Committee observed slower growth in the composite index as compared to the same period in 2014. The committee is of the anticipation that the medium term looks bright.

" It is expected that the medium term growth rate will be more positive supported by an improved energy situation and increase in the production of oil and a general improvement in the macro economic environment."

Analysts anticipated a increase in the monetary policy rate given the worsening forex exchange situation of the country.

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